Insurance Australia Group Limited
 |
| Type |
Public (ASX:IAG) |
| Founded |
2000 (renamed from NRMA Insurance Group in 2002) |
| Headquarters |
 Sydney, Australia |
| Area served |
Australia
 New Zealand
 United Kingdom
 Thailand
 Malaysia
 China
|
| Key people |
James Strong AO, Chairman
Michael Wilkins, CEO |
| Industry |
Insurance |
| Products |
General, commercial, vehicle, home and contents insurance, roadside assistance |
| Revenue |
▲ A$7,381 million (2007) |
| Operating income |
▼ A$963 million (2007) |
| Profit |
▼ A$552 million (2007) |
| Employees |
15,000+ |
| Subsidiaries |
NRMA Insurance, CGU Insurance, SGIO, SGIC, Swann Insurance, NZI, State Insurance, CAA, NZI Thailand, Safety Insurance, AmAssurance, Hastings Insurance, Equity Insurance Group |
| Website |
www.iag.com.au |
Insurance Australia Group Limited (IAG) is an Australian publicly-listed company with its shares traded on the Australian Stock Exchange as ASX: IAG.
The company was formed by the demutualisation of the NRMA Insurance business in July 2000 and a return of shares to the members of NRMA. According to its website, NRMA Insurance Group Limited changed its name to Insurance Australia Group Limited on 15 January 2002. IAG is the name of the listed entity; it is not a customer-facing retail name, however it represents the holding company that holds the many retail brands together.
Insurance business
Insurance Australia Group operates a number of different insurance brands in Australia, Asia and the UK including:
Australia
- NRMA Insurance
- SGIO, acquired in 1998
- SGIC, acquired in 1998
- CGU Insurance, acquired in 2003
- Swann Insurance, acquired in 2003
IAG has a 70% shareholding in Insurance Manufacturers of Australia Limited (the other 30% being held by RACV), which issues insurance under the RACV Insurance name that is sold by RACV.
IAG's biggest competitor in Australia is Suncorp-Metway Limited, who operates the Suncorp, GIO, AAMI, Vero, Just Car and other insurance brands.
New Zealand
United Kingdom
Asia
- Safety Insurance, Thailand, held a stake in 1998, now holds 96% voting rights
- NZI Thailand, acquired in 2003
- AmAssurance, Malaysia, acquired in 2006
Other business
In China, Insurance Australia Group owns CAA, the China Automobile Association, the largest roadside assistance provider in the country. IAG held a stake in CAA since 1999, increasing to full ownership in 2003.
Executive structure
Board of Directors
- James Strong AO, Chairman. Also chairman of Woolworths Limited, Rip Curl and Australian Council for the Arts. Also on the board of QANTAS.
- Michael Wilkins, CEO
- Hugh Fletcher[1], Non-executive director
- Anna Hynes[1], Non-executive director
- Phillip Colebatch, Non-executive director
- Geoffrey Cousins, Non-executive director
- Neil Hamilton, Non-executive director
- Rowan Ross, Non-executive director
- Brian Schwartz, Non-executive director
Executive team
- Michael Wilkins, CEO Insurance Australia Group
- Justin Breheny, CEO IAG Asia
- Nicholas Hawkins, Group Chief Financial Officer
- Andy Cornish, CEO Direct Insurance
- Jacki Johnson, CEO eVentures
- Duncan West, CEO CGU Insurance
- Neil Utley, CEO IAG United Kingdom
- Ian Foy, CEO IAG New Zealand
- Leona Murphy, Group Executive, Corporate Office
Peter Connell served on the executive team until mid 2007, however a restructure of the executive team saw Mr. Connell now reporting to Neil Utley. Neil Utley's position now stands as CEO IAG UK Operations with Peter Connell as Deputy CEO UK. Peter Connell continues to run the Hastings Insurance business in the UK.
On 14 December 2007 it was announced that Mario Pirone would be leaving CGU and his position of CEO, to be replaced by Duncan West, the previous CEO of Vero Australia, part of the Promina Group.[2]
In April 2008, then Chief Operating Officer - Michael Wilkins announced the merger of the CGU and Business Partnerships divisions. This will creating one division focusing on Commercial Lines business with Intermediated markets. Former Business Partnerships CEO, Jacki Johnson will continue to serve on the executive team as the CEO eVentures. This new division will focus on strategy and implementation on the IAG brands marketing to an internet focused customer group.
News of the merger of CGU and Business Partnerships saw the resignation of long serving Business CEO - David Issa. Mr. Issa announced his resignation from IAG effective 5 May to pursue other interests.
Organisational transformation and change
It is reported that the organisation is currently undertaking a restructure due to massive profit losses. Former CEO Mike Hawker employed Leona Murphy formally of Promina (now Suncorp) to reshape and transform the organisation from one that has been siloed across geographical regions to an organisation that can leverage scale, add value to all customers and become an organisation with one balance sheet. She is now Group Executive, IAG Corporate Office.
The result of the restructure was announced on 4 March by Leona at the Capitol Theatre. All employees from the former Business Services division were invited to attend the announcement. Many positions have been made redundant or moved reporting lines. Phase two of the restructure has commenced to be announced by the end of April 2008.
The sub divisions of Business Services (now Corporate Office or devolved into the IAG business brands include:
- Group Human Resources headed by Denis Bourke
- Technology Services - headed by Larry Howard (departed November 2008)
- Asset, People and Safety Support - headed by Stuart Ulhorn
- Australian Financial Services - headed by David Hosking
- Actuarial and Risk - headed by Brett Ward
Sustainability
On 31 August 2006, IAG was placed on the Dow Jones Sustainability Index[3]. IAG is the first Australian insurance company to achieve this recognition.
On 15 November 2006, IAG announced it intended to become carbon neutral within five years across all of its operations.[4]
QBE merger speculation
In 2004, speculation emerged that IAG would merge with Australia's largest insurer QBE Insurance however IAG denied the merger at the time.[5] Speculation again emerged in 2006 only to be again denied.[6]
In April 2008, QBE began a series of friendly merger talks with IAG. On 10 April 2008, QBE proposed a takeover with each IAG share being exchanged for 0.135 QBE shares plus 50 cents cash (an effective value of $3.75 per IAG share at the time). This offer was rejected by the IAG board the next day. QBE responded by increasing its offer to 0.142 QBE shares plus 70 cents per IAG share. On 14 April 2008, IAG also rejected this offer. On 16 May 2008, QBE increased its offer to 0.145 QBE shares plus 90 cents per IAG share (an effective value of $4.60 per IAG share at the time). This was rejected by IAG four days later and on 21 May 2008 QBE confirmed talks had collapsed and withdrew its offer.[7]
References
See also
External links
